It can be difficult to get a handle on the emotional realities of your divorce, but coping with the untangling of your life from that of your spouse is just one of the many tasks ahead of you. Divorce, after all, is a major financial transaction. If you’re unprepared to effectively argue for the outcome that you need and deserve, then you put yourself at risk of facing unnecessary financial hardship as you enter the next phase of your life. Don’t let that happen to you.
Instead, think through what sort of divorce strategy will position you for success. Keep in mind that you’ll have to address key legal issues like property division, alimony and child support, so you have a lot of room to argue for the financial outcome you want. That said, we realize that the divorce process can be difficult to understand, and it can be hard to think clearly when you’re wrapped up in the emotions of the situation. With this post, we hope to give you some ideas for how you can position yourself for the short and long-term financial stability you need.
Tips for protecting your financial interests in divorce
Even if you feel like your divorce is spinning out of control, there are steps you can take to gain control and protect your interests. This includes:
- Conducting an inventory: While you should receive your fair share of the marital estate, that’s only going to happen if you have a realistic picture of which assets fall into that estate. The only way to ensure you’re capturing all assets that should be subject to division is to conduct an inventory. If you don’t, then you might inadvertently leave assets out of the process, cutting yourself short in the property division process.
- Creating a budget: A post-divorce budget can give you a sense of security and also help you identify what you need out of your divorce to be successful. Be thorough and realistic when you create your budget, though, otherwise it won’t be as valuable of a tool as you want it to be.
- Securing valuations: When the value of certain assets is questionable, then you should seek out valuations to ensure they’re properly handled in your divorce. These valuations are often beneficial when dealing with a family business, artwork, jewelry and other family heirlooms.
- Considering forensic accounting: If you suspect that your spouse is hiding assets from you or has squandered assets away after determining that divorce is on the horizon, then you may need a forensic accountant to help you figure out what’s going on. One of these professionals can follow paper trails to identify hidden assets and lost marital funds, which you can then consider when navigating the property division process. This will better ensure that you receive your fair share of the marital estate.
- Taking debt into account: While a lot of the focus in your divorce will be on dividing assets and securing the funds you need for the next chapter of your life, you can’t overlook the importance of debt division during divorce. You don’t want to be stuck with so much debt that you can’t get your feet under yourself post-divorce, so make sure you negotiate or litigate in a way that avoids taking on too much debt.
Develop a divorce strategy that protects your financial interests
The financial outcome of your divorce can reshape your life for years to come. Although that might be stressful to think about, try to use it as a motivating factor. After all, you can find the education and support needed to lessen the weight on your shoulders and find a path forward that maximizes your chances of achieving a fair and favorable outcome.